Trump’s Tariffs Hit Halloween Industry Hard, Raising Prices and Forcing Layoffs

The Halloween industry is facing one of its toughest seasons in years as U.S. tariffs on Chinese imports drive up costs, shrink inventories, and force layoffs at longtime businesses.

Chris Zephro, co-founder of Trick or Treat Studios in Santa Cruz, California, says his company has already paid more than $800,000 in tariff costs this year alone. His warehouse, filled with horror masks and props, usually supplies more than 10,000 retailers worldwide. But the new import costs forced him to lay off 15 employees, the first time in the company’s 15-year history.

President Donald Trump’s administration raised tariffs on most Chinese goods to 145% in April before lowering them to 30% in May. Many importers canceled production orders for the Halloween season, fearing prices would be too high to sell.

Industry-wide, about 90% of Halloween products contain parts made overseas, most commonly in China. The result is higher retail prices across the board. The National Retail Federation estimates Halloween spending will reach a record $114.45 per person this year, up $11 from last year.

Retailers are also feeling the strain. Ryan Goldman, owner of Phantom Halloween in Northridge, said costumes for adults will cost $5 to $10 more this year, while some large props are simply no longer worth selling due to skyrocketing import costs. “The aftermath isn’t pretty because it’s going to create a financial strain on a lot of families,” Goldman said.

Shoppers like Reyna Hernandez, who is buying pieces of her son’s costume one at a time, say the price hikes are already making celebrations harder to afford. “We cannot even afford this at all,” she said.

While the White House insists tariffs will strengthen American industry, Zephro argues they are devastating small and medium-sized businesses. “If you really want manufacturing to come back here, you have to look at why manufacturing left and start there,” he said. “Then incentivize companies, not penalize them.”

Industry leaders warn that smaller manufacturers without the resources to absorb higher costs or shift operations will struggle the most, with some already closing their doors.

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